When valuing a stock using the constant-growth model, d1 represents the?

1 answer:

3 0

When valuing a stock using the constant-growth model, D1 represents the next expected annual dividend. The constant-growth model is formally known as the Gordon Growth Model. This model shows the intrinsic value of stock based on dividends in the future if they are growing at a constant rate. Instrinsic value is the value of something based on anaylsis without accounting for the market value.

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The direct income capitalization model employs …………. time horizon: ________

jekas [21]

The direct income capitalization model employs an infinite time horizon.

<h3><u>What is time horizon?</u></h3>

A time horizon, sometimes referred to as a planning horizon, is a set point in the future where specific activities will be assessed or taken to have concluded.
Assigning such a defined horizon time is important in an accounting, financial, or risk management regime so that alternatives can be assessed for performance over the same time frame.

In the real world, a time horizon is physically impossible. Even though short term horizons like end of day, end of week, and end of month matter in accounting, these horizons are typically used for simple mark to market processes and summing up.

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1 year ago

The Affordable Care Act provides that individuals and families may take a tax credit called the ______ to help them purchase hea

scZoUnD [109]

The Affordable Care Act provides that individuals and families may take a tax credit called the <em>Health Insurance Premium Tax Credit </em>to help them purchase health insurance.

<h3>What is Affordable Care Act? </h3>

The Affordable Care Act was enacted to reduce the cost of health insurance coverage for people who qualify for it.

The law of the Affordable Care Act make provision for premium tax credits and cost-sharing reductions to help the lower-income group.

Hence, the Act provides that individuals and families may take a tax credit called the <em>Health Insurance Premium Tax Credit </em>to help them purchase health insurance through a health insurance exchange.

Therefore, the Option C is correct.

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2 years ago

You and a rival are engaged in a game in which there are three possible outcomes: you win, your rival wins (you lose), or the tw

kherson [118]

Answer:

A) There is a 50% chance the game ends in a tie, 10% chance you win (and therefore a 40% chance you lose).

expected value = (50% x 20) + (10% x 50) + (40% x 0) = 10 + 5 + 0 = 15

B) There is a 50-50 chance of winning and there are no ties.

expected value = (50% x 50) + (50% x 0) + = 25 + 0 = 25